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Airline SAS posts bigger Q2 loss amid restructuring

STORY: Scandinavian airline SAS on Thursday posted a second-quarter loss that more than doubled from a year earlier.

That’s while pledging to complete its financial restructuring this summer.

It posted a pretax loss of over $287 million for the February-April quarter - compared with a loss of around $132 million a year earlier.

That came as operating costs rose more than revenue.

The carrier pledged it would complete its financial restructuring this summer, known as the SAS FORWARD plan.

The CEO said the firm would emerge from the plan as a “financially stronger airline with a stable equity structure”.

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The airline filed for U.S. bankruptcy protection in 2022.

It had been struggling for years with high costs coupled with low customer demand, exacerbated by the global health crisis.

The company has said the restructuring, which was approved in March this year, will wipe out SAS' equity with no payments to existing shareholders.

The company's exit from bankruptcy will be financed by $1.21 billion in funding from a combination of...

hedge fund Castlelake, airline Air France, investment manager Lind Invest and the Danish state.

Shares were down in early trading following the earnings report.